Silver Price Daily Forecast – Support At $22.30 Showed Its Strength

Strong U.S. Dollar Continues To Put Pressure On Silver

Silver failed to continue yesterday’s rebound as the U.S. dollar gained ground against a broad basket of currencies and put pressure on precious metals.

The U.S. Dollar Index is currently trying to get to the test of the major resistance level at 94.65. If the U.S. Dollar Index moves above this level, it will gain more upside momentum which will be bearish for silver.

Meanwhile, gold continues its attempts to settle below $1850. Gold’s RSI is still in the moderate territory so there is more room to gain downside momentum if the U.S. dollar moves higher. If this happens, silver will find itself under increased pressure.

Gold/silver ratio has found support at 80.40 and managed to get above the 81 level. Yesterday, gold/silver ratio tested the 85 level but pulled back. If gold/silver ratio moves closer to 85, silver will test the recent lows at $21.65.

The recent U.S. economic reports including Initial Jobless Claims and Durable Goods Orders were disappointing which increased pressure on silver. Industrial demand is a very important part of the total demand for silver so silver is sensitive to the general state of the economy.

Technical Analysis

Silver faced resistance at $23.30 and pulled back closer to the support at $22.30. However, the support at $22.30 showed its strength, and silver rebounded closer to the resistance level at $22.90.

If silver manages to settle above $22.90, it will head towards the next resistance level at $23.30. This level has just been tested, and silver will likely need additional upside catalysts to continue its rebound above $23.30.

In case silver gets above the resistance at $23.30, it will move towards the 50 EMA at $24.90 although it may face additional resistance at lower levels along the way.

On the support side, silver needs to settle below the support at $22.30 to gain more downside momentum. In this scenario, silver will quickly get to the test of the next support level at the recent lows at $21.65. #Silver##XAG/USD#

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